The European Union's antitrust authority will take a decision in
the coming weeks to either go ahead with a settlement procedure or
step up legal proceedings against Google Inc. after examining the
latest proposals from the search company, the bloc's competition
chief said Friday.
"It is my responsibility to ensure that Google doesn't abuse
this gatekeeper role in the EU to push its own services against
those of competitors who may be just as innovative," EU Competition
Commissioner Joaquin Almunia said, according to the text of a
speech delivered in Florence, Italy.
"Time is of the essence, and in the coming weeks I will take a
decision" on whether to turn Google's proposals into legally
binding commitments, or to issue a so-called statement of
objections about the company's behavior.
He also said to expect more action in the automotive industry,
after the commission found that five Japanese and European
companies had operated a cartel in the supply of parts to several
car manufacturers in Europe, including Toyota, Honda, Nissan and
Renault.
"The cartelists received EUR141 million ($187.6 million) in
fines and I expect that more decisions in this sector will follow,"
he said.
He also promised more antitrust action in the pharmaceutical
sector on pay-for-delay agreements, where companies stop rivals
releasing generic versions of their medicines by paying them.
Turning to the telecoms industry, where fellow commissioner
Neelie Kroes set out a new regulatory framework for the industry,
he said the completion of a single market for telecommunications
services will take time and that his agency would continue to look
at proposed acquisitions along national lines.
"We don't expect market structures to change from one day to the
next, and therefore we will likely continue to assess these mergers
on the basis of national markets--at least for some time," he said.
"And this is a shame, because a genuine single market for telecoms
would give a much-needed boost to our economy and would help
European integration."
This includes the commission--as opposed to German antitrust
authorities--reviewing Telefonica Deutschland Holding AG's purchase
of Dutch peer Royal KPN's E-Plus unit, which should be notified to
his services "in the coming weeks."
Last month, the head of Germany's Federal Cartel Office, Andreas
Mundt, said the deal should be reviewed by German authorities as it
could seriously affect competition.
EU antitrust regulators are already examining Vodafone Group
PLC's acquisition of Kabel Deutschland Holding AG; the U.K. telecom
company said late Thursday that more than 75% of Kabel's
shareholders had agreed to take its offer. The commission should
pronounce on the combination on September 20.
Write to Frances Robinson at frances.robinson@wsj.com
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